India's Toy Industry Export Performance and Policy Initiatives
India's toy industry has demonstrated remarkable export growth, with overall exports (HSN 9503, 9504 & 9505) increasing by 151.9% from US$152.7 million in 2017-18 to US$384.7 million in 2025-26. Electronic & Non-Electronic Toys (HSN 9503) showed the strongest performance, growing nearly 160% from US$77.35 million to US$200.89 million during the same period. The United States emerged as the leading export destination, with shipments more than quadrupling from US$26.7 million to approximately US$111.9 million, while other key markets included the United Kingdom, Poland, the Netherlands, and Germany.
Exports of video game consoles, machines and others (HSN 9504) nearly tripled from US$15.68 million to US$46.75 million, with major destinations including the UAE, Russia, France, and the United Kingdom. Festive, carnival or other entertainment articles (HSN 9505) increased by nearly 130% from US$59.69 million to US$137.03 million, with the United States, Germany, the United Kingdom, the Netherlands, and Sweden as leading destinations. Meanwhile, imports of traditional and educational toys declined sharply by 66%, contributing to India's transformation from a trade deficit of US$213.01 million in 2017-18 to a trade surplus of US$152 million in 2025-26.
Employment and Economic Impact
The sector has significantly contributed to employment generation, with employment in Games and Toys (NIC Code 324) more than doubling from 8,685 in 2018-19 to 17,693 in 2023-24. The industry supports entrepreneurship across rural and urban areas and generates livelihood opportunities for artisans, manufacturers, traders, and small businesses, while promoting economic participation among women and socio-economically diverse groups.
Government Policy Framework
The government implemented a comprehensive policy framework including the National Action Plan for Toys (NAPT) 2020, which promotes toy design based on Indian values, culture, and history while monitoring quality and restricting imports of sub-standard products. The Quality Control Order (QCO) for Toys mandated compliance with Indian safety standards and made BIS certification compulsory, resulting in 1786 licenses granted to domestic manufacturers and 56 licenses to foreign manufacturers for toy safety as per IS 9873/IS 15644 as of May 2026. The policy exempts artisans registered with the Development Commissioner (Handicrafts) and registered proprietors of GI-tagged products.
Tariff measures included increasing the Most-Favoured Nation (MFN) tariff on toys from 20% to 60% in 2020 and further to 70% in 2023, while the tariff on Parts of Electronic Toys (HS 95030091) was revised to 20% in the Union Budget F.Y. 2025-26. The GST reduction on toys from 12% to 5% has made toys more affordable and accessible for consumers.
Key Initiatives and Programs
Multiple initiatives have been launched to support the sector: Toy Biz International B2B Exhibition (held from 4-7 July, 2026 in New Delhi) provides a platform for manufacturers to showcase products to domestic and international buyers. Toycathon encourages collaborative development of innovative toys and games by students, teachers, designers, experts, and start-ups, while the Electronic Toy Hackathon (e-Toycathon) was organized for the first time in 2025 to strengthen the electronic toy segment.
The e-Toys Lab established by MeitY at C-DAC, Noida provides hands-on training in designing and developing electronic toys, with selected young engineers (including SC/ST and North Eastern Region candidates) undergoing one year of structured training combining research and industry exposure. BIS organized Manak Manthan on IS 9873 (Part 1):2025 focusing on mechanical and physical safety requirements for toys.
The ODOP (One District, One Product) initiative has identified several traditional and indigenous toy products, encouraging product diversification, branding, packaging, skill development, and quality standardization while facilitating market access through e-commerce and international expos. Several traditional Indian toys have received GI status, including Channapatna Toys and dolls of Karnataka, Leather Toys of Indore, Madhya Pradesh, and Thanjavur Doll of Tamil Nadu.
Trade Agreements and Export Promotion
India has signed multiple trade agreements providing zero-duty market access for toy exports, including India-UAE CEPA, India-Australia ECTA, India-EFTA Trade and Economic Partnership Agreement, India-Oman CEPA, India-New Zealand FTA, and India-UK Comprehensive Economic and Trade Agreement. The Districts as Export Hubs (DEH) initiative has identified more than 10 districts with toy and doll export potential, with State Export Promotion Committees and District Export Promotion Committees constituted in 36 States/UT to strengthen export promotion.